• Queens University

• ECON 232

 Econ 232 Final Topics 1. Technological Change  Diffusion vs. Innovation - Includes organizational, machinery, anything that shifts the production function - Recall technological change shifts the production function inwards, towards the origin  decrease inputs required to produce given output - Thus modern economic growth is an increase in output without an increase in labour capital and other inputs  less Labour and capital to produce some amount of output Process of technological development - Invention  Macro – not specific to country, industry or firm, applies across many applications  GPT (general purpose technologies)  Micro – small incremental improvements, inventions - Innovation – profitable application of inventions – innovation is risky, time consuming and expensive - Adoption – not new, not creative, which idea works best in situation (entrepreneurial) - Adaptation – people using machinery, figure out how to actually use the technology in the most efficient way - Focus on innovation Technological Change  Diffusion vs. Innovation